Matt Hougan, chief investment officer at Bitwise Asset Management, Bitcoin $94,343.8 pointed out a factor that can greatly affect its price.
Adoption of Quota by Governments
Hougan, Mr. In his interview on M Podcast, he stated that if Bitcoin is adopted as a reserve asset by various countries, its price could increase exponentially.
“There is a question of whether governments around the world will add Bitcoin to their balance sheets,” Hougan said. “I can say that this possibility has not been reflected in the market at all,” he said.
Supply and Demand Balance
According to Hougan, the amount of new Bitcoin produced by mining in 2025 will be insufficient to meet the expected demand.
“The Bitcoin Network will produce approximately 160,000 to 170,000 Bitcoins in 2025. Last year, companies purchased 270,000 BTC and exchange-traded funds (ETFs) 400,000–500,000 BTC.” – Matt Hougan
This could lead to insufficient available supply to meet demand and significant increases in prices.
“The market may face an air gap where people don’t want to sell until it reaches a new big high. “This movement could be very violent.” – Matt Hougan
Bitcoin is currently trading at $94,744.
In light of these developments, it is expected that Bitcoin’s future price movements will be shaped depending on the cryptocurrency policies of governments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
